If a Firm's Output More Than Doubles When All Inputs

question 29

Multiple Choice

If a firm's output more than doubles when all inputs are doubled, production is said to occur under conditions of

• A) intra-industry equilibrium.
• B) decreasing returns to scale.
• C) imperfect competition.
• D) increasing returns to scale.
• E) constant returns to scale

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Definitions:

Coupon

The interest rate on a bond that the issuer promises to pay to the holder until maturity.

Zero-Coupon Bond

A bond that does not pay periodic interest and is sold at a discount from its face value, with the return being the difference between the purchase price and the bond's face value at maturity.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often indicating the bond's price volatility.

Coupon

The interest rate stated on a bond when issued, which is typically paid at regular intervals until maturity.